APAR Industries Limited has announced its strategic entry into the telecom service business, marking a significant diversification into railway signalling and telecom infrastructure. The company disclosed this development through a regulatory filing dated January 29, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Major Contract Win from South Eastern Railway

The company has secured a substantial contract from South Eastern Railway following a competitive bidding process. This project involves the supply, erection, testing and commissioning of telecom towers and Optical Fiber Cable (OFC) backbone infrastructure across approximately 1,563 route kilometers.

Supporting India's Railway Modernization Initiative

This contract is part of Indian Railways' nationwide upgrade of signalling systems to enhance safety, automation, and operational efficiency. The infrastructure will support the deployment of Kavach, an indigenous Automatic Train Protection (ATP) system designed to prevent train collisions and ensure speed regulation.

The project will be executed under the Standard EPC Agreement framework adopted by Indian Railways, which emphasizes milestone-based payments and balanced risk allocation between the Authority and the Contractor.

Strategic Benefits and Future Prospects

The entry into telecom service business offers multiple strategic advantages for APAR Industries:

• Revenue Diversification: Building a scalable Telecom EPC platform capable of addressing mission-critical national projects and emerging digital connectivity needs
• Engineering Leverage: Harnessing APAR's existing engineering and project execution strengths to deploy advanced signaling, communication, and digital infrastructure systems
• Market Positioning: Contributing to India's vision for a safer, smarter, and more connected railway network through indigenous technology deployment

Investment and Execution Framework

The company has indicated that there may not be significant capital expenditure required for this project during the term of agreement. However, the estimated working capital requirement is around ₹10 crores to support the project execution.

Successful execution of this project is expected to deepen APAR's engagement with Indian Railways and position the company for future business opportunities across other railway zones. The contract also provides visibility into long-term infrastructure planning and digital transformation initiatives, expanding the company's footprint in communication infrastructure.

APAR Industries has delivered a strong financial performance in the third quarter, with consolidated net profit showing significant year-on-year improvement. The company's latest results reflect robust operational execution and business growth across its portfolio.

Financial Performance Overview

The company reported consolidated net profit of ₹2.09 billion for the third quarter, representing a substantial increase from the ₹1.75 billion recorded in the same period last year. This performance indicates the company's ability to maintain growth momentum and enhance profitability.

Year-on-Year Growth Analysis

The 19.4% year-on-year growth in consolidated net profit demonstrates APAR Industries' continued progress in strengthening its financial position. This improvement reflects the company's strategic initiatives and operational improvements implemented over the past year.

The positive financial trajectory showcases the company's resilience and ability to capitalize on market opportunities while maintaining efficient cost management practices. The substantial profit growth indicates strong underlying business fundamentals and effective execution of the company's growth strategy.